Part 1: WHICH FINANCIAL STATEMENT?

Purpose: Reinforce understanding of the information provided by each financial statement.

Highlight the financial statement you would consult to find the following information.

BS = Balance sheet

IS = Income statement

SE = Statement of stockholders equity

CF = Statement of cash flows

Not = Not found on any of the financial statements

FINANCIAL STATEMENTS

(Highlight only one correct answer)

Example: IS

Rental costs incurred this year. (BS / IS / SE / CF / Not)

Rental costs paid this year. (BS / IS / SE / CF / Not)

Rental costs still owed. (BS / IS / SE / CF / Not)

Cost of equipment allocated to this accounting period. (BS / IS / SE / CF / Not)

Equipment book value (carrying value). (BS / IS / SE / CF / Not)

Market value of equipment purchased ten years ago. (BS / IS / SE / CF / Not)

Accrual-basis accounting used to compute operating results. (BS / IS / SE / CF / Not)

Cash-basis accounting used to compute operating results. (BS / IS / SE / CF / Not)

Noncash investing and financing activities. (BS / IS / SE / CF / Not)

Market value of investments in the short-term trading portfolio. (BS / IS / SE / CF / Not)

Market value of the common stock issued by the corporation. (BS / IS / SE / CF / Not)

Amounts contributed by common stock issued by the corporation. (BS / IS / SE / CF / Not)

Inventory remaining unsold at the end of the accounting period. (BS / IS / SE / CF / Not)

Cost of inventory sold during the accounting period. (BS / IS / SE / CF / Not)

If we use the FIFO inventory cost flow assumption,

the most recent inventory costs will end up on this statement. (BS / IS / SE / CF / Not)

Evaluate how assets are currently being financed. (BS / IS / SE / CF / Not)

Financial statement reporting amounts as of a certain date. (BS / IS / SE / CF / Not)